Banks are very weak. The S&P 500 FINANCIALS INDEX dropped to 150, heading for their 125 low just 6 weeks ago:
| Value 150.31 | Change -5.48 | % Change -3.5% |
The Alerian MLP Index pulled back 4 to 191½, retreating from the 200 ceiling, The Dow Jones REIT Index pulled back 4 while Barclays Capital High Yield Bond ETF was even (junk bonds still have a few fans). However, the VIX is up 1½ to over 44 as fears are resurfacing on expectations of bad earnings reports.
Oil slipped back into the 30's , it's a tough time for all markets.
| CLG09.NYM | ...Crude Oil Feb 09 | ....37.91 | ... 2.92.......(7.1%) |
Earnings reports will start with Aloca (AA), a Dow stock, tonight. They are expected to be very dreadful after last week's announcement which previewed a terrible report. Expectations are for a div cut on Fri to only 1¢. Already the stock is down 83¢, taking it under 10. Bank of America (BAC), another Dow stock & until recently an S&P 500 Dividend Aristocrat, is feared to be reporting awful earnings which may require slashing the div again (after a 50% cut last qtr), down 98¢. It's very important for companies to continue paying divs since many pension & other funds will only invest in stocks paying divs.
The president will ask congress to release the 2nd half of the the $700B TARP money. Congress will have to mull that over while they are gearing up for a stimulus package approximating $1T.
Bush Asks Congress to Release $350 Billion at Obama's Request-
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